Consumers have little knowledge and education on the new chip-enabled credit and debit cards that are replacing their magnetic stripe cards, according to a survey from CA Technologies.
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The survey cites that out of the 59% US adults who have been issued the new microprocessor chip cards, only 41% are aware of the chip cards’ benefits.
Also, only 37% of these consumers have said that their card issuer offered information or education on the use of the new chip-enabled cards.
However, more than three quarters (77%) of the chip card owners hold the view that the new chip cards will address fraud more effectively for online transactions.
CA Technologies payment security business marketing director Carol Alexander said: "What’s most disturbing from the survey is that people think their chip card technology will help protect them in their online purchases. The fact is a more secure point-of-sale solution, which the chip cards are supposed to offer, will spark an increase in online, card-not-present fraud.
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By GlobalData"We saw this phenomena in Europe and other regions who have adopted chip card technology. The strength of the US e-commerce market makes card-not-present fraud an equally important security issue that card issuers and merchants need to consider in the shift to chip cards for point-of-sale transactions."
